Attorney general rejects lottery privatization bid

Pennsylvania Attorney General Kathleen Kane Thursday nixed the state’s plan to hire a British company Camelot Global Services LLC to run the Pennsylvania Lottery.

Kane said she would not sign the contract between the state and Camelot after several days of reviewing the document, her office confirmed and said more details will be provided later Thursday.

Pennsylvania Gov. Tom Corbett is looking to cut costs by privatizing various functions, including liquor stores. The lottery was the first such measure.

Camelot won the bid to manage the Lottery last month with a proposal guaranteeing $34 billion in profits over 20 years.

The Pennsylvania Lottery, whose first game went on sale 42 years ago, saw sales of $3.5 billion and profit of more than $1 billion during the fiscal year ended June 30, 2012. The lottery supports programs benefiting senior citizens.